Beijing -LRB- CNN -RRB- -- Bowing to intense pressure from local residents , authorities in a southwestern Chinese city abandoned plans to build a controversial billion-dollar chemical plant , the local government announced Tuesday afternoon .

Earlier -- defying government orders -- residents of Shifang , in Sichuan Province , continued to rally against the planned construction of a molybdenum copper plant despite an official pledge to halt the project , a protester told CNN .

The crowd on the streets thinned considerably after anti-riot police forcibly broke up thousands of protesting residents Monday afternoon , said the protester , who asked that her name not be used for fear of government reprisal .

Widely circulated images on Chinese social media sites showed police dispersing unarmed protesters with batons and tear gas , and included images of residents -- including women and the elderly -- covered in blood .

In several statements , the Shifang government said 13 residents suffered minor injuries in the clashes Monday but denied anyone had died . Warning residents to end the `` illegal protests '' immediately , authorities also defended police actions as a last-resort response to an increasingly unruly mob .

The demonstration started late Sunday , two days after officials broke ground on the controversial $ 1.6 billion Hongda Molybdenum Copper project , which they insisted had passed all environmental evaluations . Unconvinced local residents , worried about long-term pollution caused by the heavy metal plant , started gathering in the city center to demand the construction be stopped , according to government statements .

They were concerned about health problems caused by potentially substantial releases of various toxic pollutants into the local environment . Those pollutants are released into air through smoke , and into ground and water supplies through the slag waste , a byproduct of a refinery 's production process that often includes elements like arsenic .

Despite rainy weather , the crowd swelled Monday to thousands as angry residents took to the streets , chanting slogans and unfurling banners that read `` protect Shifang 's environment and give us back our beautiful home , '' according to photos and videos posted online by protesters .

After the mayor 's promise to suspend construction failed to reassure the crowd , some demonstrators hurled water bottles and potted plants at police and overturned official vehicles , forcing officers to disperse the crowd with tear gas and stun grenades , the government said .

But Chinese residents on the country 's social media sites appear to have overwhelmingly supported protesters and their cause , and condemned the local government for its crackdown . Many have also applauded Shifang business owners who posted `` no police allowed '' signs outside their restaurants and stores after Monday 's violent clashes .

In a subtle sign of its dissatisfaction over local authorities ' handling of the situation , the government in Beijing has so far remained largely silent , continuing to allow messages and images of the protest to be uploaded online .

Experts say the Shifang episode has again highlighted the rising danger in China 's behind-closed-doors environmental evaluation process .

`` This is a typical case in which the lack of public participation in the decision-making process leads to greater confusion and conflicts between government and the general public , '' said Ma Jun , a prominent environmentalist and head of the Beijing-based Institute of Public Environmental Affairs .

`` In this case , the ideal solution is to re-evaluate the whole project to set an example for the future . ''

`` Another problem is that there 's no guarantee our existing regulations can be faithfully implemented , '' he added . `` We 've had similar cases before and now apparently the public awareness has grown significantly . ''

The protest in Shifang is the latest example of China 's urban residents -- long considered the main beneficiaries of the government 's economic reforms -- banding together , often via the Internet , to defend their rights .

Last August , a large protest prompted authorities in the northeastern port city of Dalian to shut down a controversial chemical plant that produced paraxylene -LRB- PX -RRB- , an allegedly carcinogenic compound used in the production of polyester films and fabrics .

In 2008 , residents in Shanghai worried about radiation risks took to the streets to protest the construction of a high-speed rail line using the magnetic levitation technology , forcing the government to suspend the project indefinitely . And in 2007 , residents in the southeastern city of Xiamen marched against a local PX plant , which eventually moved out of the city .

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Residents were worried about the possible release of toxic pollutants from the plant

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The Shifang government says 13 people were injured in clashes Monday

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Popular protests succeeded in closing other chemical plants and derailing a high-speed rail line